Session 9-NPO F/S - PowerPoint PPT Presentation

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Session 9-NPO F/S

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  1. Session 9-NPO F/S • Required Financial Statements • Accounting for Investments Governmental & NPO Accounting-2008

  2. Required F/S • Statement of Financial Position: B/S • Net assets classified by donor restriction • Statement of Activities: Operations • Distinguish operating from non-operating • Statement of Cash Flows • Follows FAS 95 Governmental & NPO Accounting-2008

  3. Statement of Financial Position • Assets, liabilities and net assets • Classified • No equity • Net assets • Unrestricted • Temporarily restricted • Permanently restricted • Footnotes • Must give details of net asset restrictions Actual G/L accounts Governmental & NPO Accounting-2008

  4. Statement of Activities • Revenues • Classified by restriction • Restriction expiration indicated • Expenses • All unrestricted • Functional classification • Natural classification is optional • Format • Columnar • Restrictions apply to private HCOs Governmental & NPO Accounting-2008

  5. Statement of Cash Flows • Either direct or indirect method for operating cash • Direct method preferred • Indirect method reconciles to change in net assets Governmental & NPO Accounting-2008

  6. Other Statements • VHWOs • Statement of Functional Expenses • Aligns natural classification spending with functions • Addition to other financial statements • HCOs • Statement of Operations versus Statement of Activities • Shows operating income, and • Other income • Includes only unrestricted flows • Release of restrictions • Above the line: operations • Below the line: capital assets Governmental & NPO Accounting-2008

  7. Investments • FAS 124 applies • Equity and debt securities • Valued at fair value • Gains and losses, realized and unrealized • Reported in Statement of Activities • Aligned with restrictions Governmental & NPO Accounting-2008

  8. Other Signigicant Pronouncements • AICPA SOP 98-2: Fund Raising Costs • Provides visibility into the cost of fund raising • AICPA SOP 93-7: Advertising Costs • Provides visibility into advertising costs Governmental & NPO Accounting-2008